Sales tax rate to drop in Donaldsonville annex

Beginning in January, consumers can expect a lower sales tax rate for businesses within an annexed area of Donaldsonville.

Mayor Leroy Sullivan Sr. told the City Council about the upcoming decreased rate during the regular meeting Tuesday night.

Sullivan said the current 11 percent tax rate in the shared taxation district comprises an agreement between the city, Ascension Parish government, and the Ascension Parish Sheriff's Office.

The Mayor met with representatives of the entities, along with the parish's Tax Authority, to discuss taxation for the 750-acre area along Hwy. 3089 on the edge of the city limits.

The total includes the city's 9 percent rate. Parish government cuts its current 1.5 percent rate in half to .75, and the Sheriff's Office slashes its .50 rate to .25.

The decreases will set the new tax total at 10 percent, and will take effect January 1, 2016.

While the city's rate will not change, the Mayor said new documents would require a signature for the deal to go into effect.

Collections have been relatively high, in part, due to increased economic activity in the area.

City Finance Director Sandra Cost Williams reported increased tax collections over recent months, but the Mayor and Council members acknowledged that the end of a large expansion project at nearby CF Industries could lead to lower future totals.

Also during the meeting Tuesday, Sullivan recognized the passing of the city's first elected female City Council member.

He said the flag was flown at half mast and a wreath was placed on the door of City Hall in remembrance of Margaret "Teapot" Bonadona.

A memorial service was held Wednesday at St. Catherine Catholic Church.

Bonadona was a retired insurance agent, and local newspaper distributor, in addition to her service to the city.